“We’re establishing democratic institutions in the microfinance sector. In doing so, we have given out banking and microfinance licences in accordance with the 2011 law,” he said.

He added that foreign firms were circulating Ks24 billion in microfinance, which was effective at alleviating poverty.

Microfinance began to be recognised in the late 1970s with funding coming from bodies like the United Nations Development Programme and International Finance Corporation or small firms.

Some programmes have prioritised areas in the Ayeyarwady Region damaged by Cyclone Nargis in 2008 while others have targeted education, health, women and families. There are also individual loans for the development of small- and medium-sized enterprises and agribusinesses.